More chip integration expected in handset market

As smartphone functionality is becoming more diverse and comprehensive, chip designers are looking to integrate more functionality into a single chip to minimize power consumption, according to industry players.

Although chip integration is nothing new, market demand has remained limited since the related average selling prices (ASPs) have tended to be relatively high. However, the sources noted an increasing number of high-end handsets and smartphones are incorporating functionality such as audio, video, Bluetooth, FM radio, GPS and Wi-Fi, causing more strain on the processor.

After Broadcom successfully introduced a Wi-Fi and Bluetooth integrated chip solution for Apple, Atheros Communications, CSR, NXP Semiconductors, Texas Instruments (TI) and Infineon Technologies have also introduced their integrated solutions, such as Wi-Fi-GPS, Bluetooth-FM, Bluetooth-GPS or Bluetooth-audio chips, to satisfy the customers' needs, the sources indicated.

Chip suppliers added that since power-saving is one of the most important concerns for handsets, integrated chips which can share CPU's consumption and extend the handset life have become a great market for industry players to enter.